ozzie (99.95)

If . . .

6

Times like these remind me of Rudyard Kipling's poem "If" (Google it if you're not familiar with it) ...

Some excerpts that I think apply in this market:

IF you can keep your head when all about you Are losing theirs and blaming it on you,If you can trust yourself when all men doubt you,But make allowance for their doubting too;If you can wait and not be tired by waiting, . . .

If you can meet with Triumph and DisasterAnd treat those two impostors just the same;...If you can force your heart and nerve and sinewTo serve your turn long after they are gone,And so hold on when there is nothing in youExcept the Will which says to them: 'Hold on!' ...

If you can fill the unforgiving minuteWith sixty seconds' worth of distance run,Yours is the Earth and everything that's in it,And - which is more - you'll be a Man, my son!

GE in my opinion is a classic example. Growing earnings and dividends consistently, yet underperforming the overall market in 2011. Forward P/E in the 10's with huge growth on the horizon, both banked and potential. I wonder if Mr. Market catches on. He gets reminded on July 22, but with short term memory will probably get excited and then again lose heart and mind. If you focus on the microeconomics of GE and ignore the macroeconomics of a panicky market, you should be rewarded. . . . If . . . .

I've had GE as a CAPS pick since 12/17/2010. You caused me to take another look at it. Totally agree. In the trailing 12 months that dividend appears to have only required about 25% of free cash flow, going by the numbers from Morningstar.com. I believe we may see some explosive dividend growth in the future as they continue to deleverage, increase earnings and free cash flow.

I should have looked while I was there, but I don't remember how many analysts, but the consensus analyst's rating for GE at Morningstar.com was "1.4".